Switching bank accounts, if that’s something you’ve been occupied with doing, is comparatively easy, and chances are you’ll have an interest to know that there are currently six banks who will give you £175 money for switching to their services. Also, it’s value noting that some accounts pay savings interest or will give you cashback on bills.
Here’s a fast list of which bank is offering which service (on day of publication):
Sign-up money offers
First Direct: £175 to change, plus TOP service
Santander: Free £175 plus 1% to three% bills cashback (ends this Thurs)
NatWest/RBS: Free £175 plus £3/month cashback
Nationwide: £100 free money for brand spanking new customers
Virgin Money: 25% cashback on supermarket/fuel spend (max £160)
Longer-term rewards
Santander 123 Lite: 1% to three% bills cashback
Chase: 1% cashback, 1.5% interest plus fee-free overseas
Also our in depth round-up of our greatest easy accessibility savings accounts this Autumn is here.
Savers (interest paying)
Virgin: 2.02% on £1000 plus 1.71% on £25,000
Chase: 1.5% on as much as £250,000
Nationwide: 5% on £1,500, for ONE 12 months
switching bank accounts
Should you’re overdrawn
Many of the principal banks charge about 40% interest for overdrafts but some offer 0% overdrafts, so in the event you’re within the red, it’s value noting that you just CAN still switch in the event you’re overdrawn BUT is does depend upon your intended recent provider’s lending procedure. They could resolve to not give you an overdraft, or could give you a lower overdraft limit. Nonetheless, many banks have eligibility checkers to find out whether you’re prone to get the overdraft before you are trying for it.
These three banks offer:
First Direct: £250 0% overdraft
Nationwide: 12-month 0% overdraft
Starling: Low overdraft rates
Insurance
Nationwide: £500+/12 months insurance for £156 p.a.
The Current Account Switch Service (CASS) process takes seven working days to use for: you only open a brand new account together with your chosen bank, then request a switch, and provided each banks are signed as much as CASS, the switching service will close your old account and transfer your money, direct debits and standing orders across
It’ll also handle payments attributable to your old account by routinely directing them into the brand new one, for no less than three years. It also guarantees a refund of any charges wrongly accrued attributable to this process.
RECURRING PAYMENTS
Otherwise generally known as Continuous Payment Authorities, these are arrange using your debit or bank card details, versus your account number and type code: so belongings you’ve arrange like storee cards or memebership fees. So in the event you switch, ensure that to present your recent card details to any firms that take money out of your card this manner.
ACTIVE DIRECT DEBITS
An energetic direct debit is one which has paid out within the last 13 months or is lower than 13 months old. Old direct debits can stay energetic even in the event you’re not paying out on them every month in case they’re needed again, or in the event that they’ve been arrange for annual payments. After 13 months, your bank may remove them out of your account, or mark them as inactive.
YOUR OLD ACCOUNT
You should close your old account in the event you switch via CASS (the norm in the event you want the switching incentives). Your recent bank will routinely move across all payments like direct debits or your salary.
ISAs and Credit Cards
Moving your current account won’t affect these sorts of payments as they’re separate out of your account; in the event you arrange a direct debit for these, it is going to be routinely moved to your recent checking account.
SAVINGS ACCOUNTS
There’s currently no switching service for savings accounts but you’ll be able to move them yourself by opening the brand new savings account and transferring your money across.